Economics • Banking & FinanceMedium
In the context of financial inclusion in Sikkim, what has been the primary contribution of Micro Units Development and Refinance Agency loans?
A. Providing collateral-free institutional credit to micro and small business owners✓ Correct Answer
B. Financing massive hydroelectric power plant construction
C. Issuing sovereign gold bonds to international investors
D. Regulating cooperative bank interest rates across districts
💡 Solution & Explanation
Micro Units Development and Refinance Agency provides collateral-free institutional loans up to specified limits to micro and small enterprises, empowering local entrepreneurs, homestay owners, and artisans in Sikkim. Large infrastructure projects are financed through syndicated loans and corporate bonds rather than this scheme. Financial decentralization through these channels fosters local self-employment.
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